Probably a stupid question but would it work?

[james110]

I was wondering if you had a house on large parcel of Land,the general concesus would be to add Subdivide/Granny flat it but as we all know that can cost up to 100K$

What about subdividing the block and Building a huge fence between property and plot and then putting a caravan on the plot lets say over 22 feet,and rent it out as a cheap alternative rental to a Granny flat.

Landscape gardens around it and so on....

Not knowing much about how caravans work how would you hook up sewer,elect and water.

If it could be done would generate great cashflow,but would someone rent it,would someone rent the house knowing that was down the back even if it had a fence and was out of sight.

Would use seperate access obviously.

Any thoughts would be appreciated

 

[westminster]

I don't think you'd have a hope in hell of a seperate sewerage etc unless it was a transportable park home or similar.

I doubt you'd be able to get landlords insurance either

If you wanted to offer a complete deal (I'd power, water included) and were happy to not have insurance then you might be able to do it. Watch out for negating the insurance on the main house

You'd need to self manage as I doubt an agency would touch it

 

[chilliblue]

The majority of councils that I have dealt with would never allow a permenant caravan in residentially zoned areas.

Many have a maximum period normally only a few months.

 

[james110]

Really i didnt know that CHilliblue.

So some councils would only allow you a few months to park you caravan at your house.

 

[S.T]

Parking and living in are two different things.

 

[one world]

I did it with a PPOR many years ago.

Friends stayed in the Caravan, they were sensible people so there were no issues.

Problems with Council only arise when tenants or other malicious people complain.

With landscaping, patio, external toilet/bath its a great idea.

Be aware that your tenants will most likely be men.

 

[citystar]

This sounds like something Nathan would suggest to make an empty block of land he bought for $1000 cash flow positive from day one. Interesting to see if you could pull it off. Alternatively turn it into a solar panel farm to really annoy the neighbours.

 

[james110]

So oneworld you reckon it could work?

I am thinking massive cashflow potential.

But as someone has said you cant live in a caravan on a plot of land for more than 3 months in some councils.


I think there is an idea to work with here it just needs re-working perhaps.

 

[westminster]

Well I would expect that for a lower cost solution like a caravan there would be a lower cost return.

 

[james110]

Well naturally there would be Westminster.

Im just wondering how it would work Such as Electric and water wise?


22 Foot caravan 10,000 12,000 $

Fence 800$ to 1000$

Landscaping and a deck would also need to be factored in.

If a granny flat rents for say 220 in a particular area lets say you could get 100 to 120 Pw for it.

Returns could be amazing.

Justvthe legality of it needs to be discussed.

 

[one world]

So oneworld you reckon it could work?

I am thinking massive cashflow potential.

But as someone has said you cant live in a caravan on a plot of land for more than 3 months in some councils.


I think there is an idea to work with here it just needs re-working perhaps.

I was once in your shoes and desperate for yield to pay off our mates the Banks.

If you live in your PPOR and have civilized friends in the caravan who don't upset the neighbours, I doubt if Council would care. Remember Council only bothers you when malicious people complain or when there are dozens of cars parked everywhere.

When its all done and you are ready to sell your PPOR, just tow the caravan away.

House prices are not cheap. You need yield. If I were younger and in your shoes I would do it again.

Obviously you wouldn't want to put strangers in the caravan lest they play up and upset the neighbours with noise etc.

Caravans get hot in summer BTW. Might be better to use an insulated transportable donga for circ $7,000 at auction? Dividing up the power bill will not be easy if they use air conditioning or electric heating.

 

[james110]

This is exactly what i am thinking one world.

Its just how would you get water and elect plumbed up to Caravan/Residence safely!!!

 

[james110]

But wouldnt a donga need Need council approval,its more like a permanant building ie Granny Flat.

 

[one world]

This is exactly what i am thinking one world.

Its just how would you get water and elect plumbed up to Caravan/Residence safely!!!

You need tradie mates. Or find a moonlighting apprentice on Gumtree who can do it safely.

But wouldnt a donga need Need council approval,its more like a permanant building ie Granny Flat.

Tell them you are using it as a storage shed. The worst they can do is ask you to move it.
If done nicely, it may even add a bit of value when you sell your PPOR someday.

Here is the biggest caveat: your biggest drama will be if you allow thoughtless idiots to move in. It will be then that Council gets on your back. You really need to live in the house to ensure that there is no bad behaviour.

 

[datto]

This sounds like a good idea.

I would be more inclined to find pensioners for tenants as I think there would be less problems (until they cark it in the caravan and you dont see them for days - gawd, whats that smell!)

 

[one world]

This sounds like a good idea.

I would be more inclined to find pensioners for tenants as I think there would be less problems (until they cark it in the caravan and you dont see them for days - gawd, whats that smell!)

Pensioners are good, provided they don't drink too much.

God forbid if they die in the caravan!!

 

[james110]

Yeah that would be a problem!!

Well then i could just tow the Caravan to Funeral parlour.JOB DONE!!

ON a more serious note not that this isnt serious^^^^^^^.

I would never attempt the work myself would definetly get a tradie, what i would like to know is how would they tap in to water or Electric.

 

[datto]

I would never attempt the work myself would definetly get a tradie, what i would like to know is how would they tap in to water or Electric.

Caravans have their own water supply.

They also have a power socket. Just plug the power in.

 

[one world]

I would never attempt the work myself would definetly get a tradie, what i would like to know is how would they tap in to water or Electric.

Most apprentices would know. Plenty are looking for weekend work. Try advertising in Gumtree. In our case, we used buried PVC pipe for plumbing rather than copper. The power was external and raised above ground, trailing a fence, in a secluded part of the block so it was not noticeable. Burying it costs more. We never had safety issues. The tenants rarely used aircon or heaters so that was good - bills for these can be very large.

Drainage for the shower was a bit of a drama, we had a soak well put in. Plenty of digging but it was easily done. The house had an external toilet and that was no problem.

Remember, this is a project for young and enthusiastic people who are struggling with mortgages.

And be aware that you really need to be living there in case problems arise.

I did it once when I was younger and had friends looking for accommodation. Personally, I would not take in strangers lest they cause problems.

 

[james110]

Oh Ok thank you, right so you would need water tight electrical connection from house to yard,and that would be difficult to do with a fence between you but all is possible if it is tried.

Water ,im guessing there are storage tanks on board, also could try plumbing up pre existing rain water tank as well to run on part of the time WINNING!!!

How would you figure out the rent as well,what? a bit below what a granny flat rents for, but more than a single room in a house would rent for.

YEAH?